New figures released by GlobalData show that the construction project pipeline in Australasia is healthier than that of any other region, while in Latin America the industry is struggling to meet deadlines.
Australasia has a score of 0.78 in GlobalData’s April 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to come to overall scores for countries, regions and sectors.
Within Australasia, the industrial sector has performed particularly well, with a score of 0.9, ranking second out of all 11 regions.
By contrast, the region's residential sector has performed less well, ranking sixth with a score of 0.58.
Which regions are struggling?
While the construction sector in Australasia may be thriving, in Latin America the situation is less positive. Latin America has a score of just 0.12 in GlobalData's Construction Project Momentum Index, indicating frequent project delays and cancellations.
The situation is particularly severe in Argentina, which scores just 0.03 in the index. Colombia (0.06) also scores poorly. The situation is somewhat better in Chile, the best-performing country in Latin America, with a score of 0.36.
Looking at construction projects by industry, Latin America's difficulties are greatest in the industrial sector, which scores just -0.03 in the index. That puts Latin America in 11th place out of 11 regions in terms of the health of its industrial sector construction projects. The residential sector performs somewhat better at 0.5.
How are different sectors performing worldwide?
GlobalData's analysis examined construction projects in six sectors around the world: energy and utilities, commercial and leisure, industrial, institutional, residential and infrastructure.
For construction projects in the energy and utilities sector, western Europe is seeing the healthiest performance with a score of 0.74 on GlobalData's Construction Project Momentum Index. By contrast, Latin America has the worst score for projects in this sector – just 0.14.
Looking at projects in the industrial sector, north-east Asia is the best-performing region with a score of 1.65, whereas Latin America is again the worst-performing region with a score of -0.03.
Investors looking to avoid delays and cancellations while constructing residential buildings should be looking to eastern Europe, which comes out top of the Construction Project Momentum Index in this sector with a score of 1.14, while steering clear of sub-Saharan Africa (-0.31).
Infrastructure projects, meanwhile, have been running most smoothly in North America (1), while meeting the greatest friction in Latin America (0.1).
In the commercial and leisure business, construction projects are currently seeing fewest delays in north-east Asia (0.82) and the most delays in Latin America (0.03).
GlobalData also examined the progression of construction projects in the institutional sector, finding that they were proceeding most successfully in eastern Europe (1.57) and least successfully in China (0.35).
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress that increases the project's score while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reducing of the project's scope.
Events that can increase a project's score on the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
For a regional breakdown of GlobalData's Construction Project Momentum Index, visit: